Velocys Share Discussion Threads

[gac141] 16/3/2018 12:22

Sky’s the limit for Velocys after ENVIA secures approval for landfill gas to renewable fuel plant (VLS)
by ValueTheMarkets • March 15, 2018
Velocys (LSE:VLS) shot up by nearly a third in early trading after the Renewable Identification Numbers (RINs) produced at its joint venture ENVIA Energy’s plant in Oklahoma City received government verification. The RINs were approved by Weaver, an independent third-party auditor operating under the Quality Assurance Program (QAP) approved by the US Environmental Protection Agency (US EPA).

RINs are serial numbers assigned to a batch of biofuel to track its production, use, and trading, as required by the US EPA.They are used to track the compliance of obligated parties like oil companies which the EPA requires to process certain volumes of biofuel every year in its efforts to drive US energy independence and clean fuel production. Like a currency, the credits are generated by renewable fuel producers, traded by market participants and then purchased by obligated parties like gasoline companies. These obligated parties then ‘retire’ the RINs into compliance and supply the attached biofuel into the wider fuel market.

Today’s news is a landmark for Velocys because the diesel produced at ENVIA made from the landfill gas portion of the feedstock can be used by obligated parties to meet their environmental requirements. This opens up its market greatly, with ENVIA already signing an agreement with TransMontaigne Product Services which will see it purchase all of the available RINs generated by ENVIA for six months from April.

Based on 2017 RIN values, the possible revenue from RINs attributable to ENVIA’s mixed feedstock fuel was equivalent to $2.4/gallon or above throughout 2017. As a result, Velocys said a significant contribution of ENVIA’s revenues could be derived from the ongoing sale of RINs.

Most importantly, today’s news provides a commercial proof of concept for the company. Velocys is planning to turn woody biomass into renewable fuels at its large Mississippi-based biorefinery, which is slated to reach final investment decision around the middle of 2019.

The Mississippi biorefinery is expected to produce 20m gallons of renewable fuel a year, with Velocys generating $6.90 of revenue for every gallon against opex costs of £2.50 a gallon. Not bad for a business with a current market cap of just £26.05m and additional plans to develop renewable jet fuel with British Airways up its sleeve.

David Pummel, chief executive of Velocys, said today’s news will help progress in Mississippi: ‘This is a significant landmark for ENVIA and represents a further validation step for Velocys’ strategy to build biorefineries that convert woody biomass to renewable fuels. ENVIA demonstrates that we have the capability to produce verified RINs that will enable Velocys to unlock the attractive US renewable fuels market and, in time, grow a material supply position. This milestone is also important to our ongoing Mississippi biorefinery project, being one of the key requirements that will support building a consortium of strategic investment partners into the project.’

With today’s news being highly anticipated by the market, shares rose by as much as 30pc in early trading. At the time of writing, they were up 9.5pc, or 1.3p, to 15p. With plenty of news flow on the way regarding Velocys’s Mississippi biorefinery, the firm could still be undervalued at this price.

Author: Daniel Flynn

[jayrh] 16/3/2018 10:23

On it's way back up

[gac141] 16/3/2018 09:45

For those that still have an interest amongst all this nonsense. A reasonable BRR Media interview with Philip Stratmann.

hxxp://webcasting.brrmedia.co.uk/broadcast/5aaa784192ce37082371436b

[cpap man] 16/3/2018 08:23

Not JC is it?!?!?

[marketm1] 16/3/2018 00:48

What do you mean??

[stealth mode] 15/3/2018 23:36

NUKE DROPPED

DEATH 19 RETURNING TO BASE.


STEALTH MODE IS ON.

[bullet ant] 15/3/2018 21:52

Twitter says hemo going to 0p :(.

Do you want flies with ur McDo? LOL.

Twitter "told" everyone you are a dope and I agree with it.

Do you realise stalking is a criminal activity? We know you are a shyster shouting 20p on hemo to suck people. Shame on you. Stick to shelves stacking in Lidl dear.


BA
Stealing is Giid

[ernestsyngen] 15/3/2018 21:41

Bullet Ant

Why do you go round giving it the “Big’n” swearing an cursing people. Making rude and highly offensive remarks?

You were uncovered on Twitter as working at McDonalds in Woking. Not the big player you make out to be.

[bullet ant] 15/3/2018 21:25

OMG

I have a new friend, Ernest. This dope bought Hemo after it has risen by 300% (at near 6p) and shouting 20p

Now nursing 40% loss. Sad, I would say very say.

Unfortunately I have got new hater FAN :(, I suppose he will a new benefactor of mine from now on, he can replace my Auntie Patsie/Till who died. Will surely donate to my prosperity fund too.

Pretty sure the business relationship will last for a long time. I value my benefactors.


Please everyone say hello to Ernest, can Noncey and Kunt6 tell him the rules about donation and BA no refund policy, no money back guarantee.




BA
Stealing is good.








ernestsyngen9 Mar '18 - 18:35 - 8 of 98
0 0 0
Hi Patient, 40 % down here myself but Medium term I believe we are on to a winner. An RNS regarding a Big Partnership could throw this up 200 if not 300%. By December I expect us well north of 20p IMO.

I believe in investing with the Board of a Company and they have a great proven Board of members.

[ernestsyngen] 15/3/2018 21:17

The Bell End Bullet Ant is too busy serving up Bug Mac’s in Woking McDonalds.

[bullet ant] 15/3/2018 21:17

Just watching here.

Someone is selling in blocks, and making sure everyone sees it too, well I saw it I should not say everyone.

What would be the point of selling lots, in block of 94K shares. This is showing to punters they are selling big and they are the same seller.They showed their cards.

I suppose 12p-13p could be good, but most probably that seller will be thrashing order-book when they are done as they will want to buy back for the next rinse and repeat ops.

Spread was 12% at one point.


I do not know much about this company but looking at it, looks interesting. Could be a good one for medium term.

The selling pressure killed it today.

Only issues you get Jinxes like Noncey and his bankrupt Kunt 6, that's usually flashing red neon avoid signals for me.



BA
Stealing is good.

[marketm1] 15/3/2018 21:03

What’s ur target here bullet ant

[bullet ant] 15/3/2018 20:35

Nice

All coming my way, just like on Ami. I love donation for my prosperity fund.

Give Noncey a fiver, so he can feed himself for a week.


BA
Stealing is good

[kirk 6] 15/3/2018 20:27

Hi bullet I'm a millionaire from trading thanks xxx

[hmgouda] 15/3/2018 16:48

You are absolutely spot on that's why at some point today the spread between the sell and buy price was 1.5P. Hold tight and GLA

[sep800] 15/3/2018 15:59

No Placing required, they just raised £18.4M at 10p - don't any of you do any research before buying into any aim companies ? or are you trying to de-ramp a company that some very large institutions like Lansdowne have 28% stake and Mr Abramovich and his Ervington 29% stake tells you all you need to know why they are heavily invested here. Not for a couple pennies like your short term day traders. They are here for the bigger picture 40p + now the licences have materialised.
Obviously people de ramping that sold too early thinking this was going to tank today but holding very well for the next resistance at 24p.

Very few shares to be traded and once these get taken watch this move to next resistance 24p.
Only 23% of shares are in free float and and a large % of these will be held onto so that tells you these tightly held shares will only leave hardly anything to trade daily without huge rise

[john henry] 15/3/2018 12:46

mcpaula, play time over back to class for you. DH

How about open placing PIs @ 10p taking profit.

[kirk 6] 15/3/2018 12:40

This will take time but once momentum gains the price will be well above 30p within the next month

[woolybanana] 15/3/2018 12:09

Excellent news at last but not a lot of share movement, pity.
Just a slight query: the company announcement contains the qualifying statement
“Subject to the plant running within the required efficiency range it is expected to continue to produce verified RINs (Q-RINs).”
Does this refer to quality or quantity or both?
Do we know whether the plant is producing up to the spec and how many barrels of wax that is, or are they still working on getting it up to range?